NECESSITY,
FUNCTION, AND CONFORMITY: KRS 45A.877 requires the Office of Financial
Management and Economic Analysis to establish and maintain a schedule of rates
at which underwriters will be reimbursed for fees and expenses of the counsel
they retain for a bond issuance of a state bond issuing agency. This
administrative regulation establishes the rate schedule for underwriters'
counsel.

Section 1.
Rates to be Reimbursed for Counsel to Underwriters. When an underwriter is
utilized on a bond issuance of a state bond issuing agency, the amount of
expenses to be paid to the underwriter for reimbursement of its cost of
retaining legal counsel for legal services relating to the bond issuance shall
be as follows:

(1) For bond
issuances with principal amounts from zero to $10,000,000, the rate shall be
equal to the fee paid to bond counsel on the same bond issuance.

(2) For bond
issuances with principal amounts greater than $10,000,000 to $25,000,000, the
rate shall be equal to seventy-five (75) percent of the fee paid to bond
counsel on the same bond issuance.

(3) For bond
issuances with principal amounts greater than $25,000,000 to $50,000,000, the
rate shall be equal to sixty-five (65) percent of the fee paid to bond counsel
on the same bond issuance.

(4) For bond
issuances with principal amounts in excess of $50,000,000, the rate shall be
equal to fifty-five (55) percent of the fee paid to bond counsel on the same
bond issuance.

(5)
Notwithstanding the provisions of subsections (1) through (4) of this section,
the minimum rate at which an underwriter shall be reimbursed for its legal
counsel for legal services related to the issuance of bonds of a state bond
issuing agency shall be equal to ten (10) cents per $1,000 of principal amount
of bonds issued, not to exceed the fee paid to bond counsel on the same bond
issuance.

(6) All rates
reimbursed pursuant to this administrative regulation shall be inclusive of all
expenses. (21 Ky.R. 1991; eff. 3-22-95.)